Speeches made by Federal Reserve officials are an integral part of the Fed’s management of expectations strategy. In a speech made in November 2002, then-Fed Governor Ben Bernanke, when trying to reassure the public that the Fed would try to avoid a general decrease in prices if needed, stated that the government might cut taxes, increase the federal deficit, and issue bonds that the Fed would buy by printing money. Comment on the effect of this speech on expectations about the Fed’s credibility with regard to fighting inflation.